Charles Esther
Bitcoin (BTC) surged to a new all-time high of $123,525 on Wednesday, surpassing the previous peak of $123,231 on Coinbase.
The rally came alongside the S&P 500 reaching a record high of 6,457, signaling strong momentum across both crypto and traditional markets.
Inflation Data Boosts Market Optimism
The Bitcoin rally followed the release of July US CPI data, which showed year-over-year inflation holding at 2.7%, unchanged from June and slightly below the forecast of 2.8%.
Monthly CPI growth slowed to 0.2% in July compared to 0.3% in June, reinforcing expectations of a less aggressive Federal Reserve stance.
Market Anticipates Fed Rate Cuts
The CME FedWatch tool indicated a 93.9% probability of an interest rate cut at the Fed’s September meeting.
Historically, crypto investors note that Fed rate reductions and a slowdown in quantitative tightening tend to support Bitcoin’s price performance.
Impact of US Economic Policies
Traders also anticipate that President Donald Trump’s “One Big Beautiful Bill” could stimulate spending, increase inflation, and encourage risk-seeking behavior in financial markets, further supporting crypto momentum.
ETF Inflows Strengthen Bullish Sentiment
Bitcoin and Ethereum spot ETFs attracted significant inflows, boosting market sentiment.
Farside Investors reported $65.9 million in Bitcoin ETF netflows and $523.9 million in Ether ETF purchases on Tuesday alone.
Ethereum ETF Milestone
The Ethereum ETF surpassed $1 billion in inflows, while the Bitcoin ETF has accumulated $1.02 billion in inflows since Friday, reinforcing bullish sentiment across crypto markets.
Short Liquidation Data Shows BTC Momentum
Liquidation heatmaps from Hyblock show Bitcoin breaking through a short liquidation cluster starting at $122,500, with potential forced position closures extending toward $124,000.
Nearly $2 Billion in Short Positions at Risk
Data from CoinGlass indicates that around $2 billion in short positions could be liquidated if BTC price moves through the $122,800 to $125,500 liquidity cluster.
This adds further bullish pressure on Bitcoin and supports the current uptrend.
Technical Indicators Suggest Further Upside
The combination of ETF inflows, Fed rate cut expectations, and short liquidations suggests Bitcoin may continue to push higher in the coming sessions.
Traders Remain Optimistic
Market participants remain optimistic about BTC, citing historical patterns, strong institutional support, and macro-economic conditions that favor risk assets like Bitcoin.
